Roller coaster is what NIFTY has been in last one month and I have been enjoying the ride. I am not trader at heart and do not participate in the daily/short term activities. But being a Gemini the volatile and chaotic situations gives me thrills and excitement🙂
The NIFTY chart is pleasant to eye, at least for short term. On 2nd May it touched to psychological height of 5299 and closed in red. Infact, the bearish trend was indicated a day ago on April 30, but there was no other indicators so that red closing was not significant. On side note, Candle Chart showed red bar on 2nd May , however OHLC showed green , perhaps therefore candle chart showed more clearly about the trend reversal.
That after 2nd May , for five consecutive days were bears delight. However, it noteworthy that during these six red days the fall was gradual and not sharp as expected. So, either bears were weaker than expected or bulls did not give up easily and fought back without giving much ground.
12th May was D-day, and bulls were pushed to the level 4914, it was bottle neck situation , but bulls reiterated strongly and recovered some of the ground lost on previous day. On next day, bears put more force but positively the lower level was 4944, higher than previous 4914. On 14th the bulls started from 4958, where it was left on the previous closing and marched and closed at 5012, just above the previous days opening of 5009, as if challenging the bears.What happened thereafter in two days on 15th and 16th showed clear strength of bulls.
Ofcourse, now as the level of 5200 is approaching, bears are ready to sho(r)t back. Now level of 5300 is crucial and required to be conquered, but bears will not give up easily. All indicators are turning into positive, except the Chaikin Money Flow (CMF) which is disheartening. CMF is still in distribution mode, of course histogram is decreasing with positive divergent.